Oportunidad en el sector industrial

Industrial sector offers intriguing opportunities as it shows signs of potential rebounds. The ETF XLI, which tracks this sector within the S&P 500, has become overbought, much like the worst point in 2025. October is notorious for major market drops; however, markets typically find footing to steer the year's final stretch and set the stage for the following year's beginnings with upward trends.

The selling pressure is intensifying in technology, particularly with the chip index (SOX) leading the charge. While the S&P 500 holds up well, the Dow Jones shows a more industrial profile and is clearly positive.

The industrial sector appears to present interesting opportunities. Focusing on the XLI, it comprises more than 50% of its weight in aerospace and defense, electric machinery, and equipment sectors. This sector fell by 13% since the historical highs of August and is currently trading near the expansive support zone, an important support area established in early April.

With weekly overbought readings similar to April 2024 during the tariff war, this sector is trading within key supports and would likely benefit from a rebound.

Examining its key representatives after recent declines offers further potential opportunities. Caterpillar surged more than 300% from April 2025 lows to June peak highs and is now pulling back to some of those previous overextensions. It has a solid support zone around $660, which is likely to attract medium-term investments, marking half the previous uptrend's decline and aligning with the March lows. Resistance is immediately around $775.

General Electric Aerospace has been trapped in a perfect ascending channel since late 2023. The support base for this channel is currently around $280. Buying opportunities arise whenever April lows are not threatened. RTX Corp is restructuring upwardly with precision since October 2023, tracing the support line from 2025 and early October.

It presents a compelling bet with a stop loss below $179 in closing prices. Deere & Co's support areas near the $600-$620 range are of particular interest, as they coincide with the 200-day moving average and the ascending channel base since May. Union Pacific has retreated around 15% from its summer highs and, after a brief dual bottom at the $268 support, seems poised to rise towards its July highs of $314.53.

Short-term corrections would invite investment in this company with the goal of reaching its July highs and beyond.

Lastly, Boeing, the aerospace giant, boasts a formidable resistance line around $250, connecting the peaks in 2021, 2023, and early 2024. Crossing this line would signal strong strength in the medium to long term. It is crucial to keep an eye on this development for future prospects.